Dan Morehead talked about ethereum’s potential rise after the new update. Ethereum’s potential applications, lower environmental impact and technical upgrades are likely to help the ether token continue to outperform bitcoin, Pantera Capital CEO Dan Morehead said at the Reuters Global Markets Forum
EIP 1559 significantly changes how transactions are processed on the Ethereum blockchain. It will also reduce the supply of the ether token. It is scheduled to go live on 4th August.
As a more recent token, ether has further to run than bitcoin, Morehead told the Reuters Global Markets Forum on Monday. He added that the latest EIP 1559 upgrade will help it trade more like a fixed asset.
“You’ll see a transition of people who want to store wealth, doing it in (ether) rather than just bitcoin,” he added.
Morehead said that migration to the upgraded “Ethereum 2.0” will reduce ether’s mining energy use compared to bitcoin’s carbon footprint. The blockchain’s use in DeFi applications will also support prices. Ether almost doubled its price in 2021 to its Monday close of $2,608.
Morehead sees bitcoin ending 2021 between $80,000 and $90,000, and rising above $120,000 within a year. Increased mainstream adoption could push it as high as $700,000 in the next decade, he said.
Despite recent volatility that left bitcoin 40% below its April all-time high of $64,895, Morehead said Pantera Capital’s funds have attracted institutional investors who are less “momentum”-oriented than retail investors and see current prices as a buying opportunity.
Pantera has invested in several crypto exchanges including Bitstamp, Coinbase, and regional exchanges such as Mexico-based Bitso.
Commenting on the global crackdown and regulatory scrutiny on Binance, Morehead said that it is a “transition” phase.